Press Release

27 January 2016

 

Ace Liberty and Stone plc

 

('' Ace '' or "the Company'')

 

Interim Results

                                      

Ace Liberty and Stone Plc (ISDX: ASLP), the specialist real estate company, capitalising on commercial property investment opportunities across the UK, today announces its interim results for the period ended 31 October 2015.

 

Highlights

 

·    Turnover up 145% at £989,571 (2014: £404,494)

·    Profit before tax up 82% at £514,093 (2014: £281,791)

·   Total equity attributable to shareholders of the parent now amounts to £13,768,606 (2014:             £9,814,175)

·    Shildon House purchased January 2016

·    Hume House exchanged unconditional sales contract January 2016 for £3.55m

·   Portfolio as at 31 October 2014 valued at £20,164,428 (2014: £11,883,742) generating an annual rental income in excess of £2,261,000 (2014: £1,687,000)

 

Ismail Ghandour, Chief Executive of Ace Liberty & Stone, commented: "The Board is pleased with the continued growth of the Company as we remain committed to building shareholder value for Ace.  The Directors will continue to monitor market conditions carefully and seek out profitable investment opportunities in the increasingly competitive regional commercial property market."

 

- Ends -

 

 For further information, please contact:

Ace Liberty & Stone Plc
Ivan Minter, Finance Director	Tel: +44 (0)  20 7201 8340
	http://acelibertyandstone.com
Alfred Henry Corporate Finance Ltd, ISDX Corporate Adviser
Jon Isaacs / Nick Michaels		Tel: +44 (0) 20 7251 3762
		www.alfredhenry.com
Hybridan LLP, Corporate Broker
Claire Noyce / Darshan Patel		Tel: +44 (0)203 764 2341
		www.hybridan.com

 Media enquiries:

Abchurch Communications
Quincy Allan / Canace Wong	Tel: +44 (0) 20 7398 7700
quincy.allan@abchurch-group.com	www.abchurch-group.com

 

 

Notes to Editors

 

Ace Liberty & Stone Plc is a London-based property investment company with a diverse portfolio of properties located across the UK, currently including Leeds, Doncaster, Sunderland, Dudley and Gateshead Tyne and Wear. The Company locates commercial properties which have the potential for an increase in value through creative asset management activity, such as change of tenancy, change of use or new lease negotiation.  Ace has maintained a track record of generating strong profits at disposal of properties and achieving better-than average returns on capital. With strong support from shareholders and mortgage lenders, the Company is currently seeking further investment opportunities in the UK to create value for existing and new investors.

 

The London property market has seen considerable recovery since the 2008 financial crisis. However, in some UK regions smaller properties have begun to appreciate in value, and this trend is starting to appear amongst larger properties.

 

Ace is run by a board with extensive property experience, an excellent network of contacts and relevant professional qualifications. This sector expertise has allowed the Board to identify opportunities and act promptly to secure investments.

 

For more information on the Company please visit: http://acelibertyandstone.com/    

 

 

Chairman's statement

 

I am pleased to present the Company's interim results for the half year ended 31 October 2015. Turnover during the six month period increased by 144.6% to £989,571 (2014: £404,494) and the profit before tax for the period increased 82.4% £514,093 (2014: £281,791). These results show continued good progress and the Directors anticipate maintaining this trend.

 

The Board has identified the following KPIs as relevant to evaluating the Group's performance. These are regularly monitored to ensure the Company maintains its desired progress.

 

	Six months ended 31 October 2015 (Unaudited)	Six months ended 31 October 2014 (Unaudited)	Year ended 30 April 2015 (Audited)
	GBP	GBP	GBP
Value of Portfolio	20,164,428	11,883,742	23,964,428
Portfolio annual rental income	2,261,000	1,687,000	2,231,000
Total equity attributable to shareholders	13,768,606	9,814,175	12,410,366
Rental income per quarter	494,786	202,247	300,296
Profit after tax per quarter	205,637	111,296	189,756

 

On 30 October 2015, the Company completed the sale of its remaining holding in Telephone House at its valuation of £4,000,000. The proceedings from the transaction were reinvested in new properties after 31 October.  As a result cash in hand at 31 October 2015 has shown significant increase.

 

Ace has announced the purchase of Shildon House Gateshead for £1,825,000 and further acquisitions will be announced shortly.  These recent purchases reflect the Group's commitment to seeking out properties with good covenants, high yield and opportunities for capital appreciation in what is becoming an increasingly competitive market.

 

Within the last few days, Ace also announced the unconditional sale of Hume House for £3,550,000 with completion in December 2016. This property was acquired in March 2014 for £1,670,000.  Ace will continue to receive rental income from the property until completion of exchange.

 

The Company announced on 21 January the appointment of Hybridan as its corporate broker. This appointment is expected to result in increased activity in the trading of the Company's shares, which should be of benefit to all shareholders.

 

The Directors value the continued support of shareholders and note with satisfaction the additional share capital of £946,966 net of costs subscribed during the period; further announcements can be expected in the next few days. It is the Board's intention, subject to satisfactory trading results, to continue to pay a dividend at an increasing percentage.

 

 

Keith Pankhurst Chairman 27 January 2016

 

 

 

 

Unaudited group statement of comprehensive income

for the six months ended 31 October 2015

 

	Six months ended 31 October 2015 (Unaudited)	Six months ended 31 October 2014 (Unaudited)	Year ended 30 April 2015 (Audited)
	£	£	£
Turnover	989,571	404,494	1,201,185
Administrative expenses	(481,825)	(386,479)	(887,425)
Fair value adjustment	200,000	350,000	1,186,983
Finance costs	(210,240)	(111,943)	(277,705)
Finance income	16,587	25,719	43,743
Share-based payment charge	-	-	(211,200)
Profit for the period	514,093	281,791	1,055,581
Taxation	(102,819)	(59,200)	(296,559)
Profit from continuing operations	411,274	222,591	759,022
Basic	0.074	0.064	0.177
Diluted	0.065	0.063	0.156

 

 

Unaudited group statement of financial position

at 31 October 2015

 

	Six months ended 31 October 2015 (Unaudited)	Six months ended 31 October 2014 (Unaudited)	Year ended 30 April 2015 (Audited)
	£	£	£
ASSETS
Non-current assets
Investment properties	20,164,428	11,883,742	23,964,428
Current assets
Trade and other receivables	364,257	666,365	128,301
Cash and cash equivalents	6,808,007	3,124,612	1,947,384
	7,172,264	3,790,977	2,075,685
TOTAL ASSETS	27,336,692	15,674,719	26,040,113
EQUITY AND LIABILITIES
Current Liabilities
Trade and other payables	1,133,064	527,492	1,100,447
Borrowings	2,597,483	275,468	2,533,421
	3,730,547	802,960	3,633,868
Non-current liabilities
Borrowings	7,855,564	3,344,216	8,052,269
Other payables	918,524	918,491	918,524
Deferred tax	467,254	141,012	364,435
	9,241,342	4,403,719	9,335,228
EQUITY
Issued capital and reserves
Share capital	5,582,691	4,680,295	5,238,340
Share premium reserve	6,004,878	4,409,767	5,402,263
Share option reserve	479,180	267,980	479,180
Other reserve	462,500	-	462,500
Retained earnings	1,239,357	456,133	828,083
Total equity attributable to owners of the parent	13,768,606	9,814,175	12,410,366
Non-controlling interests	596,197	653,865	660,651
	14,364,803	10,468,040	13,071,017
TOTAL EQUITY AND LIABILITIES	27,336,692	15,674,719	26,040,113

 

 

Unaudited Group cash flow statement

for the six months ended 31 October 2015

 

	Six months ended 31 October 2015 (Unaudited)	Six months ended 31 October 2014 (Unaudited)	Year ended 30 April 2015 (Audited)
	£	£	£
Profit/(loss) before tax	514,093	281,791	1,055,581
Cash flow  from operating activities
Adjustments for:
Finance income	(16,587)	(25,719)	(43,743)
Share-based payment charge	-	-	211,200
Fair value adjustment	(200,000)	(350,000)	(1,186,983)
Decrease / (increase) in receivables	(235,956)	(226,108)	311,956
Increase / (decrease) in payables	190,312	(96,283)	349,847
Tax paid			(44,773)
Net cash (used)  by operating activities	251,862	(416,319)	653,085
Cash flows from investing activities
Interest received	16,587	25,719	43,743
Purchase of investment properties	-	(1,501,475)	(12,745,178)
Sale of investment properties	4,000,000	-	-
Net cash  (used) / generated by investing activities	4,016,587	(1,475,756)	(12,701,435)
Cash flows from financing activities
Share issue, net of issue costs	946,966	1,293,929	2,844,470
Payment for shares to be issued	-	-	462,500
Short term loans advanced	-	-	435,938
Long term loans advanced	-	701,637	7,702,500
Long term loan repaid	(132,643)	-	(470,795)
Equity dividend paid	(222,149)	(101,209)	(101,209)
Net cash generated by financing activities	592,174	1,894,357	10,873,404
Net (decrease) / increase in cash and cash equivalents	4,860,623	2,282	(1,174,946)
Cash and cash equivalents at the beginning of the period	1,947,384	3,122,330	3,122,330
Cash and cash equivalents at the end of the period	6,808,007	3,124,612	1,947,384

 

 

The interim financial information set out herein does not constitute full financial statements within the meaning of Section 240 of the Companies Act 1985. The unaudited Group results have been prepared under the historical cost convention, in accordance with the Companies Act 1985 and applicable accounting standards in the United Kingdom.

 

The interim report has been prepared using accounting policies consistent with those set out in the Company's Annual Report and Accounts for the period to 30 April 2015. Those financial statements were prepared on a going concern basis.

 

The interim report for the six months to 31 October 2015 was approved by the Board on 26 January 2016

 

The Directors of Ace Liberty & Stone Plc accept responsibility for this announcement.